Libor Is Sold to NYSE Euronext

7/9/2013 7:59AM

Libor, the benchmark that underpins interest rates on trillions of dollars in financial contracts, is being sold to NYSE Euronext. An announcement of the deal is expected Tuesday. David Enrich reports.

This transcript has been automatically generated and may not be 100% accurate.

I ... the the ... the all stock exchange is going to take a libel London interbank offered rate ... David and says the deal will be in ... its bid by the U K Treasury ... David ... we all know that this is all it is looking for someone's taking over the new loan is on the ... NYSE ... yet the surprise this is a knit the companies that been there in the running for just between you and for the likes of Thomson Reuters and data provider is now in the Newark Stock Exchange which ... is surprising for Number reasons one is that it's an American company as the London interbank offered rate so this time theres a lot of eyebrows in the City of London that ... any institution that been so closely associated with the rise of the City of London to the global financial powerhouse pastoral decades is now moving ... to ... London the greatest rival problem with his meal or less sleepy briefly exactly what the ... live or is it white so important ... yet live or is it ... it's an index compiled every day in local different currencies over different time periods of ... Beazley estimates how much it costs initial banks to borrow from ... other banks the prom is that it's been engulfed a mass of skimmed over the past couple of years he is ... of repeated efforts by ... many banks that ... to try to manipulate the rate for the financial ... the Mississauga based banks Association he always insists he says he was pretty ended up almost twenty years ago and it ... gets the BBA of course is a trade association comprised of many of the world's largest banks and ... the rate until very recently has been completely unregulated by anyone ... and you know surprise surprise and it's this left the the ... in the hands of institutions owned by banks is a ... it's ... also been very good at preventing those banks from an appeal ... to serving as an ongoing investigation heinous of a bank's already a was clients to to to this but you hate this aren't so ... it's good to go basically to deal in the run up to the NYSE ... but they might be the changes to it yet Wall first evolved to be clear it's not a surly going to actually ... the owner will be come NYSE Euronext which is a New York-based company has a transatlantic exchange operator runs exchanges ... all based in both the U S and Europe and its big specialty is to ribbons exchanges are one of their specialties and why war is a key component of ... all sorts of defensive derivatives of this kind of make sense ... we don't know what NYSE Euronext is going to do in terms of reform in the process thereby already been ... a number of changes implemented in the UK says strength in the governance and ... try to prevent future manipulation is as likely Adobe further changes announced today ... that nothing could be coming this Liang ... ok but they still so it still regulation of the race itself for the remaining the dreaded so regulation will in the U K s Financial conduct Authority will remain ... responsible for regulating it is un clear to me ... for him to work on the right now is that ... they will remain in charge of regulating it but it would not surprise me at all if we hear later today ... the U S authorities also say that they should have some role in overseeing a novice be run ... by an American ... despite the fifteen ... eighty and at this stage of the firm's of the deal ... we don't know ... my guess is this gonna be a pretty small for us that though because ... Israel has been so banged up by scandals and if the profitability ... the future profitability of it is that at best questions that thank you ...